5 Best Dividend Stocks of All Time

4. Merck & Co., Inc. (NYSE:MRK)

Dividend Yield as of July 19: 2.97%

Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company that also operates outside US and Canada under different brand names.

Merck & Co., Inc. (NYSE:MRK) offers an annual payout of $2.76 per share, up 8.6% from a year earlier. The company has not slashed its dividend since 1985 and maintains an 11-year track record of consistent dividend growth. In Q1 2022, Merck & Co., Inc. (NYSE:MRK) generated $14.7 billion in free cash flow and expects it to reach $25 billion by the end of the year. Its payout ratio sits at 39.5%, down from 43.2% in 2021. As of July 19, the stock’s dividend yield came in at 2.97%.

In July, Street analysts presented a positive outlook on Merck & Co., Inc. (NYSE:MRK) ahead of its Q2 earnings. Both Morgan Stanley and UBS raised their price targets on the stock to $88 and $98, respectively.

According to Insider Monkey’s database, 84 hedge funds owned positions in Merck & Co., Inc. (NYSE:MRK), with stakes valued at over $5.8 billion. In comparison, 80 hedge funds owned stakes in the company in the previous quarter, worth $3.7 billion.

Carillon Tower Advisers mentioned Merck & Co., Inc. (NYSE:MRK) in its Q1 2022 investor letter. Here is what the firm has to say:

“Merck (NYSE:MRK) is a global pharmaceutical and chemicals company based in Germany. Shares fell along with other vaccine-linked names after the U.S. Supreme Court blocked a rule mandating that businesses with more than 100 employees require those employed to either be vaccinated or tested weekly.”